NCCI Recommends Workers’ Comp Rate Reductions
Connecticut employers could see double-digit workers’ compensation premium rate reductions next year.
The National Council on Compensation Insurance, which analyzes and recommends rates in more than 40 states, filed a 10.9% overall average rate reduction change with Connecticut regulators.
The council is recommending the department approve both rate reductions, which would be effective for policies renewing on or after January 1, 2017.
Loss cost reductions vary by industry classification, ranging from -9.1% for goods and services to -12.7% for contracting.
NCCI cited a continuing decline in claim frequency, an improvement in combined ratios, and decreasing medical and indemnity costs in its filing.
The council reported that workers’ compensation claims dropped four straight years in Connecticut through 2014.
Connecticut’s total benefits costs were split almost evenly between indemnity (51%) and medical benefits (49%) in 2013 and 2014, the years NCCI used for its rate filing request.
Per case indemnity costs fell to $30,916 in 2014, a 1.7% drop from 2013 when costs hit an eight-year high.
Medical costs also declined in 2014, to $28,799 per lost-time case, the first decrease since 2008.
With many other business costs increasing, NCCI's recommendation to lower rates is welcome news.
Bonnie Stewart, CBIA vice president for government and public affairs, today urged the Insurance Department to approve NCCI's recommendations.
"Workers' compensation insurance represents a significant cost for Connecticut businesses, large and small," Stewart said.
"With many other business costs increasing, NCCI's recommendation to lower rates is welcome news for the state's employers."
The department approved a 3.9% reduction last November for rates charged this year. Rates dropped 0.6% in 2015, following five consecutive years of increases.
For more information contact CBIA’s Louise DiCocco (203.589.6515) | @LouiseDiCocco
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